EU targets 90% emissions cut by 2040 for climate neutrality

The proposal will require agreement with the European parliament and member states as mandated by the EU Climate Law, aligning with the European Scientific Advisory Board on Climate Change (ESABCC) and the EU's commitments under the Paris Agreement.

The commission's communication emphasises several enabling policy conditions necessary to achieve this ambitious target. These include the full implementation of the 2030 framework, ensuring European industry's competitiveness, focusing on a just transition that leaves no one behind, maintaining a level playing field with international partners, and engaging in strategic dialogue on the post-2030 framework. The outcomes of COP28 in Dubai affirm a global consensus moving in the same direction, positioning the EU as a leader in international climate action, the commission said in a press release.

Setting a 2040 climate target is seen as crucial for providing predictability and sustainability for the European economy and society. It signals the need for investments and planning to minimise the risk of stranded assets, aiming to build a prosperous, competitive, and fair society. The move is also expected to boost Europe's resilience against future crises and strengthen energy independence, reducing reliance on fossil fuel imports which accounted for over 4 per cent of GDP in 2022.

Achieving the 90 per cent emissions reduction by 2040 will require a holistic approach, starting with the full implementation of legislation to reduce emissions by at least 55 per cent by 2030. The commission plans to update the draft National Energy and Climate Plans (NECPs) and establish a dedicated taskforce for developing a global approach to carbon pricing and carbon markets. Furthermore, mobilising the right mix of private and public sector investment, along with establishing fairness and solidarity in social policies, remains at the core of the transition.

The commission has initiated formal dialogues with industry and agricultural stakeholders, emphasising the importance of open dialogue with all stakeholders to secure public engagement on future policy choices. The energy sector is projected to achieve full decarbonisation shortly after 2040, with initiatives like the Industrial Alliance on Small Modular Reactors enhancing industrial competitiveness.

As the EU continues to develop the right framework conditions for attracting investment and ensuring industrial competitiveness, the successful climate transition will require a balance between emissions reductions and carbon removals, deploying carbon capture and storage technologies, and developing CO2 supply chains.

“Europe has already made a strategic decision to invest in an innovative, sustainable and globally competitive economy, centred around agile clean industries. Today, we are taking the next step to achieve just that, with an overarching aim to bring long-term prosperity, stable jobs, and the EU’s greater economic security. We see industrial leadership and just transition as two sides of the same coin. As a strong global player in net-zero technologies, the EU will continue to keep fairness and solidarity front and centre of the European Green Deal,” said Maros Sefcovic, executive vice-president for European Green Deal, Interinstitutional Relations and Foresight.

Fibre2Fashion News Desk (DP)